1099 Tax Provision Repealed «

1099 Tax Provision Repealed


I am a lawyer by trade and even I could not make heads nor tails out of a provision in the Patient Protection and Affordable Care Act health insurance legislation that required businesses to report certain business to business transactions on the IRS form 1099.

The House had repealed the provision back in March and at the beginning of this month the Senate did as well. Yesterday, the President signed the repeal.

Ostensibly, the 1099 reporting provision was designed to increase tax and income reporting and thus increasing tax compliance. However, for small businesses (and I am one) the reporting requirement is onerous. I pay for toner. In my books I record paying for toner. At the end of the year, I know how much I paid for toner if I wanted that information, but I don’t. Imagine if your business needed to account and report on a 1099 each $600 or more annual payment to another business. I don’t even know the address of my toner guy – I call, it comes, I write a check.

There are a number of potentially beneficial provisions of the Act for small businesses. The Act will certainly benefit those small businesses that already pay some or all of their employees’ health insurance. But, as implementation occurs, provisions such as this one may come up as unworkable or particularly obtrusive to small business.

 

  • New ETFs From Scottrade - No Brokerage Fees

    There's no doubt that there are more exchange traded products now than ever.

    classy, black-and-white Corsair Graphite 600T case that says sci-fi, not hot rod. I want to get like eight of these things, ...
    Read More
  • 14 ETF Trading Strategies

    You may have heard of ETFs and some of you even have them in your portfolios, but not many investors are aware of the diverse ETF trading strategies these assets have to offer.

    Read More